SPONSORED

Adidas presents a new five-year-plan

Online Sales and Sustainability will be at the company´s focus in the next couple of years.

•• 3 Min
Adidas presents a new five-year-plan

The German sporting goods manufacturer Adidas (OTC: ADDYY) wants to double its e-commerce sales by 2025 and make its products more sustainable. This is part of a five-year plan to bring profitability closer to that of rival Nike (NYSE: NKE). <% {"companyName": "CompanyName", "companyTickerSymbol": "TWTR:NYSE", "name": "BoxNewsletter"} %> <% {"companyName": "CompanyName", "companyTickerSymbol": "TWTR:NYSE", "name": "BoxNewsletterUnder"} %> <% {"companyName": "CompanyName", "link": "link", "name": "BoxPdfReport"} %> <% {"headline": "Headline", "link": "link", "name": "BoxSeenNews"} %> <% {"companyName": "CompanyName", "companyTickerSymbol": "TWTR:NYSE", "companyWKN": "companyWKN", "targetPrice": "22.90", "name": "BoxTargetPrice"} %> <% {"tickerSymbolOne": "TWTR:NYSE", "tickerSymbolOneTwo": "TWTR:NYSE", "name": "BoxTickerSymbol"} %> Adidas is targeting online sales of up to 9 billion euros ($ 10.7 billion) per year by 2025, with an operating profit margin of 12-14%, down from 11.3% in 2019, before the Coronavirus crisis affected sales and profitability. The company has reopened 95% of its stores after coronavirus closings, it said on Wednesday as it forecast mid-to-high tens sales growth in 2021, rising as high as 30% in greater China, the rest of Asia and Latin America should. Adidas shares rose 3.2% to 1250 GMT, the largest gain in the German blue chip index. While the sporting goods industry has suffered from store closings during the COVID-19 pandemic, it has managed to sell more online as more people started running, hiking and yoga during the closings. Nike, the world's largest sportswear brand, has stated that people have enrolled en masse to their workout and store apps, which has resulted in significantly higher online sales over the past year. Adidas will invest more than 1 billion euros in its digital transformation by 2025, including making its supply chain more agile so that online orders can be delivered faster. CEO Kasper Rorsted said e-commerce will account for more than 40% of industry revenue by 2025, with online growing three times faster than offline. Adidas has already gained more than 150 million members for its online program. In addition, the company will spend one billion euros more on the brand in 2025 compared to 2021, including marketing and sponsorship, while launching sporty-inspired lifestyle products alongside its existing performance and originals fashion categories. Like competitors Puma and Nike, Adidas will put a stronger focus on the women's market and announced a partnership with Peloton (NASDAQ: PTON), which has seen a surge in subscribers to its on-demand exercise programs on exercise bikes during the pandemic. By 2025, nine out of ten products are expected to become more sustainable by using more recycled and biodegradable materials, with the Stan Smith tennis shoe leading the way with a version of a mushroom-based leather substitute due later in 2021. Rorsted said that over 70% of consumers say sustainability is an important consideration when making a purchase. With Greater China being the company's fastest growing market, Adidas will now manage this region separately from the rest of Asia. Net profit from continuing operations is expected to rise to 1.25 to 1.45 billion euros in 2021, after 429 million euros in 2020, but still below the 1.9 billion euros in 2019. Adidas expects to burden operating income of roughly € 250 million in costs to turn the ailing Reebok brand into a stand-alone business as it prepares to sell or spin off the business, with a third of that in 2022 but none in 2023.

AdidasOnline Shopping

Most Popular News

  1. SpaceX’s $8B Spectrum Deal Sends AT&T, Verizon, and T-Mobile Plummeting
  2. Is Project Vault Securing America’s Supply Chain or Squeezing It to the Breaking Point?
  3. Why Gautam Lohia Shifted from Global Consulting to Reboot a $20M Tech Micro-Cap
  4. Everyday Luxury, Unstoppable Scale: Aritzia Delivers 44% Net Revenue Growth
  5. Can Navy SEAL Leadership and Big Tech Scale Revolutionize Airborne Threat Detection?

Disclaimer


This report should not be viewed as investment advice or as an offer to buy or sell any securities or as an invitation or solicitation of an offer to buy or sell any securities. Neither the author of this report, its publisher, nor any other person associated with the publication of this report, are registered brokers, investment dealers, investment advisers, or financial advisers. The information in this report has not been tailored to the particular needs or circumstances of readers and should not be relied upon as investment advice or recommendations to purchase or sell any of the securities presented in this report. Readers seeking investment advice should contact qualified and registered brokers, investment dealers, investment advisers, or financial advisers prior to making any decision to buy or sell any of the securities referred to in this report. The information in this report should not be construed as investment, legal, or tax advice. No recommendation is made as to whether an investment in the presented securities is suitable for any reader in light of the reader’s particular circumstances.

Readers are cautioned that the publisher of this report covers exclusively securities that carry a high degree of volatility. Investing in such securities is highly speculative and carries a high degree of risk. Investors in such securities could lose all or a substantial portion of their investment. Only those investors who can afford to lose all or a substantial portion of their investment should consider investing in the securities referred to in this report.

This report may include information obtained from publicly available sources, including third-party reports or analysis. Neither the author nor publisher of this report, nor www.juniorstocks.com or its owners, have undertaken any independent investigation into the factual information used in this report, and the information in this report is provided without any warranty of any kind. No representations or warranties are provided regarding the accuracy or completeness of the information provided in this report. Statements of opinion or belief are those of the authors and/or publisher of this report. These statements of opinion or belief are expressions of the author’s and/or publisher’s judgment, and there is no guarantee that those judgments will turn out to be correct. No inference should be drawn that the author and/or publisher have any special or greater knowledge about the presented companies or their securities, or any particular expertise in the industries or markets in which the company operates. Readers should conduct their own due diligence and seek professional advice prior to investing in any securities presented on Juniorstocks.com.

Certain statements in this report constitute “forward-looking” statements. Forward-looking statements often, but not always, are identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” “targeting,” and “intend” and statements that an event or result “may,” “will,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-looking statements express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance; they are not statements of historical facts and should not be viewed as any guarantee of any future result. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. The author and/or publisher of this report disclaims any obligation to update the forward-looking statements in this report, whether as a result of new information, future events, or results or otherwise. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulation, or would subject the author or publisher of this report to any registration requirement in such jurisdiction or country.

Information about the editor of this publication:
Juniorstocks.com is a service provided by Piccadilly Capital Group, Office 66, 101 Clapham High Street, London, SW4 7TB, UK. Piccadilly Capital Group is not the publisher of this report and was not paid for the publication of this report. Piccadilly Capital Group seeks to generate web traffic and a growing number of followers through the publication of articles or reports. Directors, officers, and other insiders of the publisher own an interest in Piccadilly Capital Group. Piccadilly Capital Group does not endorse or recommend the business, products, services, or securities of any company mentioned on www.juniorstocks.com. Piccadilly Capital Group will not share your information with any outside third parties. Due to the new data protection basic regulation, we ask you to read our data protection declaration carefully.

Note on copyright:
The contents published on this website and on connected media (e.g., e-mail, X, Facebook) are subject to applicable copyright and ancillary copyright laws. Any use not permitted by applicable copyright and ancillary copyright laws requires the prior written consent of the provider or the respective rights holder. In particular, this applies to the duplication, editing, translation, storage, processing, or reproduction of content in databases or other electronic media and systems. Contents and rights of third parties are marked as such. Unauthorized reproduction or transmission of individual contents or complete pages is not permitted and is punishable by law. Only the production of copies and downloads for personal, private, and non-commercial use is permitted. Links to the provider's website are always welcome and do not require the consent of the provider of the website. Photos and images on the website may not be shared unless the publisher itself has acquired the initial rights from authorized sources. The presentation of this website in external frames is only allowed with written permission. If you notice any violations, please inform us. Please note: The content of our articles, emails, or other publications or social networks such as X, LinkedIn or Facebook is exclusively intended for the designated addressee(s). If you are not the addressee of these articles, emails, or other publications in the market letter or social networks such as Twitter or Facebook or his or her legal representative, please note that any form of publication, reproduction, or distribution of the content of these articles, emails, or other publications in the market letter or social networks such as X, LinkedIn or Facebook is prohibited. Falsifications of the original content of this message during data transmission cannot be excluded in principle.